CURRICULUM : FET

REVISION MATERIAL

LEARNER GUIDE

GRADE 12

TERM 1 2024

ECONOMICS

TERM 1 2024

TYPICAL EXAMINATION QUESTIONS:

INSTRUCTIONS AND INFORMATION

1. Answer FOUR questions as follows in the ANSWER BOOK:

SECTION A: COMPULSORY
SECTION B: Answer TWO of the three questions. SECTION C:
Answer ONE of the two questions.

2. Answer only the required number of questions. Answers more than the required
number will NOT be marked.

3. Number the answers correctly according to the numbering system used in this question
paper.

4. Write the question number above each answer.

5. Read the questions carefully.

6. Start EACH question on a NEW page.

7. Leave 2–3 lines between subsections of questions.

8. Answer the questions in full sentences and ensure that the format, content and
context of your responses comply with the cognitive requirements of the questions.

9. Use only black or blue ink.

10. You may use a non-programmable pocket calculator.

11. Write neatly and legibly.

SECTION A (COMPULSORY)
QUESTION 1: 30 PUNTE – 20 MINUTES

1.1 Choose one of the following options. Indicate the number and the letter only.
E.g. 1.1.6 C in the ANSWER BOOKLET.

1.1.1 An open economy is best described as a … sector economy.

A one
B two
C three
D four
(2)
1.1.2 Investment is an example of a/an ... in the circular flow model.

A leakage
B injection
C withdrawal
D loss
(2)
1.1.3 Fiscal policy is an action taken by government in respect of taxation and ... to
influence economic activity

A exchange control
B expenditure
C credit control
D exchange control
(2)
1.1.4 Economies of scale are associated with …

A mass production.
B limited output.
C long-term average cost increases.
D increased wastage.
(2)
1.1.5 Production by the citizens of a country, locally and abroad, is called the … product.

A gross national
B gross domestic
C net national
D net domestic
(2)
1.1.6 A physically enclosed area next to a harbour or airport where production for
exports is encouraged through incentives, is known as the …

A spatial development initiatives.

B industrial development zone.
C special economic zone.
D foreign investment grant.
(2)
1.1.7 The comparison of a country's export prices with import prices by means
of indexes is referred to as the …

A exchange rate
B condition trade.
C terms of trade.
D inflation rate.
(2)
1.1.8 Economic development is measured in terms of the …

A per capita gross domestic product.

B increase in the productive capacity.
C nominal gross domestic product.
D money supply.
(2)
1.1.9 Labour can be bought and sold in the … market.

A goods
B factor
C financial
D consumer
(2)
1.1.10 Comparative cost advantage shows that world output can increase if countries … in
what they do best.

A impose tariffs
B limit the use of technology
C specialise
D protect workers
(2)
1.1.11 The medium-term expenditure framework (MTEF) is a …-year government
expenditure and revenue projection.

A three
B one
C two
D four
(2)
1.1.12 The peak of a business cycle is characterised by a …

A high demand for credit.

B stable inflation rate.
C high unemployment rate.
D low output.
(2)
1.1.13 An increase in the productive capacity of the economy over a specific period of time is
called …

A contraction.
B economic development.
C economic growth.
D globalisation.
(2)

1.1.14 Cost-sharing grants by government to improve roads is called the … Programme.

A Expanded Public Works

B Critical Infrastructure
C Small Business Support
D Skills Development
(2)
1.1.15 An example of an economic indicator is …

A sanitation.
B population growth.
C life expectancy.
D production price index.
(2)
1.1.16 Social grants to the citizens of South Africa forms part of the … policy.

A monetary
B trade
C growth
D fiscal
(2)

(16 × 2) 32
1.2 Choose a description from COLUMN B that BEST matches an item/term in COLUMN A.
e.g. 1.2.1 H

COLUMN A COLUMN B
1.2.1 Nationalisation A number of years a person will live after birth.
Medium-term B persuasion of banks by the South African Reserve Bank
1.2.2
expenditure framework (SARB).
System of national C indicator used to measure the change in the price of
1.2.3
accounts goods produced locally when it leaves the factory floor.
1.2.4 Money flows D measures income inequality and wealth
E movement of income and expenditure
1.2.5 Protectionism
between participants in the economy.
F shows income and expenditure estimates for a three-year
1.2.6 Gini coefficient
period.
G prescribed by the United Nations to compile gross
1.2.7 Life expectancy
domestic product figures.
H trade policy that tries to keep the domestic economy safe
1.2.8 Production price index
by restricting the import of goods and services.
I transfer of functions and ownership of entities from the
private to the public sector.

(8 × 1) 8
1.3 Give the economic term/concept for each of the following descriptions. Write only the
term/concept next to the question number (1.2.1–1.2.5) in the ANSWER BOOKLET.

1.3.1 The total value of final goods and services produced within the borders of a
country in a given period.

1.3.2 Predicting the future economic activities using facts or information that is known.

1.3.3 Record of all trade and financial transactions between a country and the rest of
the world.

1.3.4 The increase in the standard of living of the people over a period of time.

1.3.5 Effortsby governments to move manufacturing and other businesses from

metropolitan areas to rural areas.
1.3.6 It measures the distance between the peak and the trough of a business cycle.
(6 x 1) (6)

TOTAAL AFDELING A: 46
SECTION B

Answer any TWO of the three questions in this section in the ANSWER BOOK.

QUESTION 2: MACRO-ECONOMICS 40 PUNTE – 30 MINUTES

2.1 Answer the following questions.

2.1.1 Name any TWO monetary policy instruments used by the South
African Reserve Bank. (2 x 1) (2)

2.1.2 What is the purpose of a trend line in a business cycle? (1 x 2) (2)

2.2 Refer to the graph below and then answer the questions that follow.

2.2.1 Identify the exchange rate system in the graph above. (1)

2.2.2 What was the original rand/dollar exchange rate before the demand for US
dollars increased? (1)

2.2.3 Briefly describe the term exchange rate. (2)

2.2.4 How has the increased demand for US dollars affected the value of the rand? (2)

2.2.5 What could the South African Reserve bank do to strengthen the value of the
rand against the dollar? (2 x 2) (4)
2.3 Study the table below and then answer the questions that follow.

NATIONAL ACCOUNT AGGREGATES – SOUTH AFRICA

SUMMARY OF GROSS DOMESTIC PRODUCT (AT R million
CURRENT PRICES) 2016
Compensation of employees 2 051 326
Net operating surplus 1 130 210
Consumption of fixed capital 613 605
Gross value added at factor cost 3 795 141
Other taxes on production 86 008
Other subsidies on production 9 935
Gross value added at basic prices 3 871 214
Taxes on products 484 059
Subsidies on products 16 415
Gross domestic product at market prices (A)?
[Source: Quarterly Bulletin SARB, June 2019]

2.3.1 Identify the factor of production in the table above that receives the biggest
portion of the national income. (1)

2.3.2 Which method was used to calculate the figures above? (1)

2.3.3 Briefly describe the term basic prices. (2)

2.3.4 Briefly explain how subsidies can influence production. (2)

2.3.5 Calculate the gross domestic product at market prices (A).

Show ALL calculations. (4)

2.4 Briefly discuss income levels and preferences and taste as demand reasons
for international trade. (2 x 4) (8)

2.5 Calculate the change in aggregate income if there is an injection of R20 billion into the
economy with a marginal propensity to save of 0,3. Show how the multiplier effect could
influence the government to create more jobs. Show ALL calculations. (8)

[40]
QUESTION 3: ECONOMIC PURSUITS 40 MARKS – 30 MINUTES

3.1 Answer the following questions.

3.1.1 Name any TWO redress policies that South Africa has used since
1994. (2 x 1) (2)

3.1.2 What effect will increased urbanisation have on the economy? (1 x 2) (2)

3.2 Study the cartoon below and answer the questions that follow.

THE EFFECTS OF GLOBALISATION

[Source: www.cseindia.org]

3.2.1 Name ONE example of a country in the North. (1)

3.2.2 Provide a characteristic of the group of countries represented by ‘South’. (1)

3.2.3 Briefly describe the term globalisation. (2)

3.2.4 Briefly explain trade as a challenge of globalisation. (2)

3.2.5 How do countries in the North contribute to the destruction of the environment? (4)
3.3 Study the information below and answer the questions that follow.

B-BBEE MORE RELEVANT THAN EVER

B-BBEE aims to ensure that the economy is structured and transformed. This
will enable the meaningful participation of the majority of the citizens
promoting the entry of black entrepreneurs into the mainstream economic
activities and the advancement of co-operatives.

[Adapted from News24, February 2019]

3.3.1 What does the acronym B-BBEE stand for? (1)

3.3.2 Which government department is responsible to ensure that the B-BBEE policy (1)
becomes a reality?

3.3.3 Briefly describe the term industrial development. (2)

3.3.4 What positive role does the Industrial Policy Action Plan (IPAP) play regarding
black economic empowerment? (2)

3.3.5 What can be done to promote entry of black entrepreneurs into businesses?
(2 x 2) (4)

3.4 How can the Critical Infrastructure Programme (CIP) and the Foreign Investment
Grant (FIG) improve industrial development in South Africa? (4 x 2) (8)

3.5 Why are special economic zones important to the economy? (8)

[40]
QUESTION 4: MACRO ECONOMICS AND ECONOMIC PURSUITS
40 MARKS – 30 MINUTES

4.1 Answer the following questions.

4.1.1 Name TWO types of business cycles. (2 x 1) (2)

4.1.2 How can SMMEs contribute to economic growth? (1 x 2) (2)

4.2 Study the graph below and answer the questions that follow.

4.2.1 Identify the curve in the graph above. (1)

4.2.2 At what tax rate will government revenue be maximized? (1)

4.2.3 How much revenue will the government receive if the tax rate is 100%? (2)

4.2.4 What effect will a decrease in the tax rate from 65% to 45% have on tax (2)
revenue?

4.2.5 What consequences could a 1% VAT increase have on the different role players
in the South African economy? (2 x 2) (4)
4.3 Study the table below and answer the questions that follow.

BUDGET SPEECH 2019: CHANGES IN INDIRECT TAXES

INDIRECT TAXES INCREASES IN TAX RATES
Carbon tax The price of plastic bags increases by 50% to 12c
per bag.
Estate duty Increase by 25% for estates greater than R30
million.
Tax on luxury goods The ad valorem excise duties on luxury goods, such as
motor vehicles, increased from 7% to 9%.
[Adapted from https//www.fin24.com/budget speech 2019]

4.3.1 Which ministry (department) is responsible for the presentation of the national
budget speech to the parliament? (1)

4.3.2 Name ONE form of direct tax payable to the state. (1)

4.3.3 Briefly describe the term budget. (2)

4.3.4 How will the increase in carbon tax on plastic bags benefit the economy? (2)

4.3.5 Briefly describe the extent to which the government addresses economic
equity. (2 x 2) (4)

4.4 Briefly discuss health as a social indicator. (4 x 2) (8)

4.5 How can developing countries ensure the survival of labour-intensive industries
in a global economy? (8)

[40]

TOTAL SECTION B: [40]

SECTION C

Answer any ONE question of the TWO questions in the ANSWER BOOK.
Your answer will be assessed as follows:

MARK
STRUCTURE OF ESSAY
ALLOCATION
Introduction
 A good starting point would be to define a concept or key word that appears in the
question.
 Include other sentences to support the topic. Max. 2
 Do not include any part of the question in your introduction.
 Do not repeat any part of the introduction in the body.
 Avoid saying in the introduction what you are going to discuss in the body.
Body: Max. 26
Main part: Discuss in detail/In-depth discussion/Examine/Critically
discuss/Analyse/Compare/Evaluate/Distinguish/Differentiate/Explain/ Assess/Debate

Additional part: Give own opinion/Critically discuss/Evaluate/Critically evaluate/Draw a

graph and explain/Use the graph given and explain/ Complete the given Max. 10
graph/Calculate/Deduce/Compare/Explain/ Distinguish/Interpret/Briefly
debate/How/Suggest/Use the information and argue, debate, evaluate.
Conclusion
 The conclusion is a wrap-up of the discussion of the topic in the body and should
be treated as a higher order response.
 The conclusion can take the form of an own opinion, with examples to support Max. 2
your discussion or contradictory viewpoint from what has been discussed.
 No aspect from either the introduction or the body should be included in the
conclusion.
TOTAL 40

QUESTION 5: MACROECONOMICS 40 MARKS – 40 MINUTES

Discuss in detail how the following factors contribute to poor public-sector

provisioning:

Lack of accountability (10)

Inefficiency (8)
Difficulty in assessing needs (8)
(26)

Suggest solutions on how efficiency of state-owned enterprises can be improved.

(10)
[40]
QUESTION 6: ECONOMIC PURSUITS 40 MARKS – 40 MINUTES

Discuss in detail the appropriateness of South Africa’s regional development policies in

terms of international benchmark criteria. (26)

How successful has the South African government been in meeting the aims of regional
development? (10)
[40]

TOTAL SECTION C: 40
GRAND TOTAL: 150